Standard Factory Overhead Variance Report Star Medical, Inc., a manufacturer of disposable medical supplies, prepared the following
Question:
Standard Factory Overhead Variance Report Star Medical, Inc., a manufacturer of disposable medical supplies, prepared the following factory overhead cost budget for the Assembly Department for October 2012. The company expected to operate the department at 100% of normal capacity of 24,000 hours.
During October, the department operated at 22,500 hours, and the factory overhead costs incurred were indirect factory wages, $167,550; power and light, $116,800; indirect materials, $31,950; supervisory salaries, $72,000; depreciation of plant and equipment, $51,500; and insurance and property taxes, $24,100.
Prepare a factory overhead cost variance report for October. To be useful for cost control, the budgeted amounts should be based on 22,500 hours. Use the minus sign to enter favorable variances as negativenumbers.
Star Medical, Inc. Factory Overhead Cost Variance Report-Assembly Department For the Month Ended r 31, 2012 Normal capacity for the month 24,000 hrs Actual production for the month 22,500 hrs Budget Actual Favorable Variances nfavorable Variances Variablo costs Indirect factory wages Power and light Indirect materials Total variable cost Fxed costs Supervisory salaries Depreciation of plant and equipment Insurance and property taxes Total fxed cost Total factory overhead cost Total controllable variances Net controllable variance-unfavorable Volume variance-favorable Idle hours at the standard rate for foxed factory overhead Total factory overhead cost variance-unfavorable
Step by Step Answer:
Computation of the following Table Star Medical Inc Factory Overhead Cost Variance Report ...View the full answer
Financial and Managerial Accounting
ISBN: 978-1285078571
12th edition
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
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